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  • AUD/USD – Aussie Dollar In Slow And Steady Downtrend

    AUD/USD – Aussie Dollar In Slow And Steady Downtrend

    • The Aussie dollar traded below 0.7620 recently against the US Dollar, and broke a major support.
    • There is a descending channel pattern formed on the 4-hours chart of AUD/USD, acting as a resistance at 0.7600, and a downside move catalyst.
    • Today, the Financial Stability Review was released by the Reserve Bank of Australia, which failed to help the Aussie dollar.

     

    RBA Financial Stability Review

    Today in Australia, the Financial Stability Review, which provides the Bank’s assessment of the current condition of the financial system and potential risks was released by the Reserve Bank of Australia.

     

    The report did not provide any positive feedback on the current condition of the financial system, which failed to lift the market sentiment for the Aussie dollar. The opening statement of the report was “A number of risks continue to weigh on the outlook for the global financial system. In China, the level of debt is high and rising despite slower economic growth and signs of excess capacity in some areas; much of the new debt is being extended by the more opaque yet interconnected parts of its financial system”.

     

    There was another important release, which impacted the Aussie dollar. The Chinese Consumer Price Index was published by the National Bureau of Statistics of China.

     

    The outcome was positive, as there was a rise of 1.9% in the Chinese CPI in Sep 2016. There was a minor rise in the Aussie dollar after the report was released, but the upside found sellers near an important resistance of 0.7600.

     

    AUD/USD Technical Analysis

    The Aussie dollar recently moved below a couple of important supports like 0.7620 and 0.7600 against the US Dollar. The AUD/USD pair also moved below the 100 simple moving average (H4 chart).

     

    AUD/USD Technical Analysis

     

    It looks like the pair under a bearish pressure, and currently following a descending channel pattern formed on the 4-hours chart. The pair has also moved below the 50% Fib retracement level of the last wave from the 0.7441 low to 0.7710 high to form a downtrend.

     

    Overall, the pair may slowly grind lower in the near term, as long as the 100 simple moving average (H4 chart) is intact. A break of the channel support area may call for a test of the last swing low of 0.7440.

     

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  • Can AUD/USD Break This To Register New High?

    Can AUD/USD Break This To Register New High?

    • The Aussie dollar slowly and steadily grinded higher against the US dollar, and looks poised for the next move.
    • There is a major contracting triangle pattern formed on the 4-hours chart of AUD/USD, which could provide us the next break.
    • This week in a crucial decision, the Reserve Bank of Australia reduced the interest rates from 1.75% to 1.50%.

     

    RBA Rate Cut and Statement

    Earlier this week, there was a major event in Australia, as the RBA Interest Rate Decision was announced by the Reserve Bank of Australia. The market was waiting for a rate cut this time, and the central bank did not disappoint. They reduced the interest rates from 1.75% tom 1.50%.

     

    The RBA statement pointed out that the “global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies”.

     

    Today, the RBA Monetary Policy Statement was released by the Reserve bank of Australia. There are a few things to note. The most important one the reason for the rate cut, which is the developments in the housing market.

     

    The Aussie dollar moved down after the release, but soon managed to recover the ground and remained in an uptrend.

     

    AUD/USD Pair Analysis

    The AUD/USD pair climbed higher recently against the US Dollar despite all odds and the rate cut. There is a crucial contracting triangle pattern formed on the 4-hours chart of AUD/USD, which may act as a catalyst for the next move.

     

    AUDUSD Pair Analysis

     

    If we can notice from the chart, then the pair is heading towards a major break. The triangle is about to break, and the pair is testing a monster resistance area of 0.7675, which also represents the last swing high.

     

    So, if the pair fails to break it, then there would be a possibility of a double top pattern, which may ignite sharp losses in AUD/USD.

     

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